SentinelOne (S) Stock Forecast & Price Target

SentinelOne reported a year-over-year annual recurring revenue (ARR) growth of 27%, reaching $920.1 million, which reflects a robust demand for its cybersecurity offerings despite slightly missing Wall Street expectations. The company demonstrated significant strength in competitive win rates and an increase in average deal sizes and ARR per customer, indicating a strengthening market position. Additionally, over 50% of new bookings in FY25 stemmed from emerging solutions, particularly in the Cloud, SIEM, and AI segments, showcasing substantial growth potential driven by advancements in artificial intelligence.

SentinelOne has demonstrated flat year-over-year Net New Annual Recurring Revenue (ARR) and a sequential growth of only 13%, reaching $60.4 million, which fell short of the Street expectation of $61.3 million. Furthermore, the company's initial guidance for fiscal year 2026 significantly disappointed investors, compounded by challenges in the macroeconomic environment that may delay deal closures and diminish conversion rates. The expected decline in Net New ARR to the low $30 million range for the upcoming quarter, alongside a potential drop in gross retention rates, raises further concerns regarding SentinelOne’s growth trajectory and overall financial health.